10 Best Pension Plans in India 2019

best pension plans

Last updated on September 18th, 2019 at 11:44 pm

After working for their whole life, everyone wishes for a peaceful retirement because, in that phase of life, everyone wants to live on his own terms and without any tension.

Well, many people think that they should start planning for retirement after 50 but that’s not true because, with delay in retirement plans, you will put everything at risk and might not live your life after retirement as you wished.

One of the most important things which you will need to have a peaceful life after retirement is money and the best way to plan for it is by opting for a pension plan which will make secure your financial future after retirement.

Pension plans are one of the most popular financial plans in India which are opted by the majority of people to secure their post-retirement life financially. So let’s divulge into the details of pension and know the top 10 best pension plans in India.

What is Pension Plan?

First, know what is pension plan? Pensions plans are also known as retirement plans and they are basically an investment plan which allows you to allocate a portion of your saving to pile up over a period of time and then act as a regular income after retirement. There are different types of pension plans available in the market offered by different companies and choosing the best one depends on your need and requirement.

Many people think that they don’t need a pension plan if they have a good amount of saving but that’s not true as savings can get exhausted during an emergency and thus it becomes necessary to have an option of regular income after your retirement which helps you to meet your daily financial need after retirement.

If you will choose the best pension plan then with regular investment in that particular plan, you will be able to grow the amount manifold because of the compounding effect and it will grow much more than your regular saving.

Also Read: How to Plan Retirement Successfully: A 6-Step Guide

10 Best Pension Plans In India

We are going to explain best pension plans in India with features and benefits.

LIC Jeevan Akshay 6 Plan

It is a type of immediate annuity plan which can be opted by paying a single premium in the form of lump sum amount.

Feature and Benefits

  • Premium is paid in lump sum
  • No need of medical examination
  • The premium paid in this pension plan is exempted from tax.
  • Providing an age-proof is necessary for this plan
  • Minimum Entry age is 30 years and maximum entry age is 85 years.

SBI Life Saral Pension Plan

It is a participating, non-linked, traditional, individual pension plan which also keeps the policyholder safe from any type of fluctuation in the market.

Feature and Benefits

  • In this plan, the policyholder gets guaranteed bonuses for the first 5 years.
  • Minimum entry age is 18 years and maximum entry age is 70 years.
  • The loan tenure is very high in this plan; 10-40 years.
  • There is no maximum limit when it comes to sum assured while the minimum limit is 1 lakh.
  • Upon the maturity of the plan, the policyholder gets bonuses for sure.

Bajaj Allianz Retire Rich Pension Plan

It is a unit linked pension plan which is quite popular among the majority of the population. It comes with guaranteed vestige and death benefits.

Feature and Benefits

  • Offers the flexibility to pay top-up premium.
  • All the premium paid in this plan are eligible for tax deductions.
  • The premium payment term is also quite flexible in this pension plan.
  • Both the vestige and death benefits are guaranteed.
  • Loyality addition added to the fund value on the original vestige date of the policy.

ICICI Pru-Easy Retirement Plan

It is a unit-linked plan which offers an assured benefit which allows the policyholder to fulfill his financial requirement after retirement.

Feature and Benefits

  • The minimum entry age in this plan is 35 years and the maximum age is 70 years.
  • There is no upper limit on the annual premium amount while the minimum amount is Rs.48,000
  • The minimum vesting age is 45 years and the maximum vesting age is 75 years.
  • The minimum policy term is 10 year and maximum policy term is 30 years.

HDFC Life – Click 2 Retire

It is an online unit linked plan which gives the advantage of market linked returns to the policyholder with very less charges that help in maintaining financial stability after retirement.

Feature and Benefits

  • Minimum entry age of this plan is 18 years and maximum entry age is 65 years.
  • The vesting benefits are guaranteed in this plan and you also get gains from the market.
  • The premium paid in this pension plan is exempted from tax.

Reliance Smart Pension Plan

It is a non-participating unit-linked plan which allows the policyholder to save for his retirement in a very systematic manner. Through this plan, the policyholder can build a lump sum and get regular income after retirement.

Feature and Benefits

  • The minimum vesting age for this plan is 45 years while the maximum vesting plan is 75 years.
  • Loyalty additions are guaranteed in this plan.
  • Income tax benefits come as add-on with this plan under Section 80C and Section 10(10A) of Income Tax Act 1961.

Max Life Guaranteed Lifetime Income Plan

It is a non-linked traditional annuity plan which provides a regular source of income for the policyholder after retirement.

Feature and Benefits

  • Offers four annuity options
  • You can opt for one time lump sum money to pay for buying the policy.
  • Option of receiving pension monthly, quarterly, half-yearly and yearly.
  • In the case of death of the policyholder, the price of the policy is returned to the nominee.

Reliance Immediate Annuity Plan

It is a non participative, non-linked plan that allows the policyholder to invest the money by converting the lump sum into a fixed regular income.

Feature and Benefits

  • No need to go through various medical tests for choosing this policy.
  • The minimum entry age is 20 years and the maximum entry age is 80 years.
  • Whole life income or annuity is guaranteed.
  • You get different annuity payout modes to choose from.

Birla Sun Life Empower Pension

It is a unit-linked, non-participative pension plan which is designed in such a way that it meets all the financial requirement of the policyholder after retirement.

Feature and Benefits

  • The policy term varies from 5 years to 30 years.
  • The minimum entry age for this plan is 25 years and the maximum entry age is 70 years.
  • You can choose from the wide variety of premium amounts.

LIC New Jeevan Nidhi

It is a traditional participating pension plan which offers a combination of both protection and savings which can be used for retirement.

Feature and Benefits

  • The minimum entry age is 20 years and the maximum entry age is 60 years.
  • The minimum vesting age is 55 years and the maximum age is 65 years.
  • You get guaranteed additions during the first five years of the plan.
  • Rebates are allowed for choosing a high level of sum assured

Different pension plans have different features and benefits and choosing the best pension plans depends totally on your needs and requirements. With a good pension plan, you will be able to build a lump sum which will act as a regular income for you after retirement and will fulfill all your daily financial needs.

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